Why Microsoft Corporation (MSFT), Adobe Systems Incorporated (ADBE) and FedEx Corporation (FDX) Are 3 of Wednesday’s Best Stocks

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U.S. stocks rose Wednesday as the Federal Reserve again held off on raising interest rates. However, comments from Fed Chairwoman Janet Yellen set the stage for a rate hike in December. The S&P 500 rose 1.09% while the Dow Jones Industrial Average gained 0.9%. The Nasdaq Composite finished by higher by 1.03%.

Why Microsoft Corporation (MSFT), Adobe Systems Incorporated (ADBE) and FedEx Corporation (FDX) Are 3 of Wednesday's Best StocksOn a strong day for stocks, Adobe Systems Incorporated (NASDAQ:ADBE), FedEx Corporation (NYSE:FDX) and Microsoft Corporation (NASDAQ:MSFT) were among the strongest of the strong.

Adobe Systems Incorporated (ADBE)

Shares of Adobe Systems climbed 7.1% on more than triple the average daily volume, touching a new 52-week high along the way, after the company reported impressive fiscal third-quarter results.

Adobe, which makes software used for graphic design, among other applications, reported fiscal third-quarter earnings of 75 cents a share on sales of $1.46 billion. Analysts expected ADBE to earn 72 cents per share on sales of $1.45 billion. Cloud computing also drove growth for Adobe.

Adobe’s “Creative Cloud package of software tools added more subscribers, which drove revenue. Its digital media segment revenue increased 29 percent year-over-year,” reports CNBC.

Adobe’s forecasts now suggest 20%-plus growth in Digital Media and Marketing Cloud.

The beat could prompt Adobe to outperform for the rest of the year.

FedEx Corporation (FDX)

A day after investors pushed the stock higher on news of 2017 fee hikes, FDX stock climbed 6.9% on nearly quadruple the average turnover after reporting solid fiscal first-quarter earnings and boosting its outlook.

Tennessee-based FDX earned $2.90 per share in its fiscal first quarter on revenue of $14.7 billion. Analysts were expecting FedEx to earn $2.79 a share on sales of $14.6 billion.

FedEx also raised its earnings outlook for fiscal 2017 to $11.85 to $12.35 per share from $11.75 to $12.25.

The company expects to add 50,000 seasonal workers to meet shipping demands for it what it expects to be record e-commerce shopping during the upcoming holiday season, according to a Bloomberg report.

Microsoft Corporation (MSFT)

MSFT, the world’s largest software maker and a member of the Dow Jones Industrial Average, advanced 1.6% on above-average volume after the company unveiled significant additions to its shareholder rewards efforts.

Microsoft is implementing a new $40 billion share repurchase program after the current slate of buybacks ends at the end of this year. The buyback figure is equal to 9% of MSFT’s shares outstanding.

Meanwhile, the company also announced a boost to its dividend, from 36 cents per share quarterly to 39 cents. Based on the new dividend, MSFT yields around 2.7%.

InvestorPlace’s Chris Tyler says this fresh cash spend should be a catalyst for even more bullishness in MSFT stock going forward.

As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.

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Todd Shriber has been an InvestorPlace contributor since 2014.


Article printed from InvestorPlace Media, https://investorplace.com/2016/09/why-microsoft-corporation-msft-adobe-systems-incorporated-adbe-and-fedex-corporation-fdx-are-3-of-wednesdays-best-stocks/.

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